20 Jul 2017

Private Sector Participation in Defence Production

The Government has finalized the policy on Strategic Partnerships in the Defence Sector. The Policy on Strategic Partnerships is intended to institutionalize a transparent, objective and functional mechanism to encourage broader participation of the private sector, in addition to DPSUs / OFB, in manufacture of major defence platforms and equipment, such as aircraft, submarines, helicopters and armoured vehicles. It is expected that the implementation of the Policy will enhance competition, increase efficiencies, facilitate faster and more significant absorption of technology, create a tiered industrial ecosystem, ensure development of a wider skill base, trigger innovation, promote participation in global value chains as well as exports, leading to reduction in dependence on imports and greater self-reliance and dependability of supplies essential to meet national security objectives. The policy has been uploaded on the website of the Ministry of Defence (https://www.mod.nic.in) as Chapter VII of DPP-2016.

Transparency and fair competition will be ensured through a rigorous implementation of the processes as contained in the extant Defence procurement procedures.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Dr. Sanjay Sinh in Rajya Sabha.